AMD: We Need Third Party IP to Differentiate

Advanced Micro Devices needs additional technologies to differentiate itself from other companies, according to its chief executive. At the same time, the company clearly does not exclude a possibility to integrate specially designed blocks into its chips in accordance with its clients' demands.

"We are looking for certain pieces of IP to add to our [existing] portfolio," said Rory Read, chief executive officer of AMD, during a conversation with analysts.

The head of AMD did not disclose what exactly he plans to integrate into the company's chips. A natural addition of 4G/LTE support is something expected from a consumerisation strategy that AMD has taken. However, Mr. Read did not talk about chip-based differentiation in general, but about devices-based differentiation in particular without providing details.

In fact, it is logical to talk about actual products from AMD. The company is selling made-to-order chips in volume and naturally expects growth of that business with the emergence of Microsoft Corp's Windows 8. In fact, AMD apparently expects a major consumer product maker to use its chips.

"What if you get a large player across tablets, maybe even across smartphones. laptops, desktops, smart televisions? [That player] is creating a chip solution [that weds x86 IP with theirs], that may change the way people buy things in the future," added Mr. Read.

While Mr. Read did not name the company interested in AMD's products, there are only two leading firms producing both traditional and media tablets: Apple and Samsung. Which of them are going to use AMD's was not disclosed at the conference.